"Steady improvement in the economy has spurred increased consumer confidence and spending," AAA Chief Operating Officer Marshall Doney said in the report.

Travel volume for Independence Day has grown four of the past five years and is likely to be more than 6% higher than the average of the past 10 years.

However, whether a vacation costs more or less than last year depends on what type of transportation vacationers choose and where they stay.

Rates for midtier two-diamond rated hotels are 15% higher than last year. For slightly more luxurious digs at three-diamond hotels, prices are 9% higher.

AAA rates 60,000 hotels and restaurants on a scale of one to five diamonds.

Among the largest, highest-rated hotels, Hyatt was up less than 1% in afternoon trading in the stock market today.

Marriott International (NASDAQ:MAR), with annual revenue north of $13 billion, also rose 1%.

Those hitting the road by auto or recreational vehicle should note that gas prices are approaching a 2014 high, with the national average for regular unleaded hovering at around $3.68 per gallon. That's the highest level for early summer in six years.

Average daily car rental costs are about the same as summer 2013, at $58.

Among national auto renters, shares of Hertz, which operates under its namesake as well as the Dollar and Thrifty brands, rose 1% in afternoon trade. Close rival Avis Budget (NASDAQ:CAR), whose businesses include Zipcar, Avis and Budget, was up a bit more than 1%.

Airfares are about 5% lower than last year, AAA said, and air travel is projected to rise to 3.1 million travelers from 3.07 million last year.

Discount carriers continue to do well, and Spirit Airlines (NASDAQ:SAVE) and Southwest Airlines (NYSE:LUV) are among the top-rated companies in the 19-company Transportation-Airlines group.

Spirit, whose stock is on the IBD 50 list of top-rated stocks, eased less than 1%, and Southwest was down fractionally.

Delta Air Lines (NYSE:DAL), the world's largest airline by market capitalization, also slid less than 1%.

"Steady improvement in the economy has spurred increased consumer confidence and spending," AAA Chief Operating Officer Marshall Doney said in the report.

Travel volume for Independence Day has grown four of the past five years and is likely to be more than 6% higher than the average of the past 10 years.

However, whether a vacation costs more or less than last year depends on what type of transportation vacationers choose and where they stay.

Rates for midtier two-diamond rated hotels are 15% higher than last year. For slightly more luxurious digs at three-diamond hotels, prices are 9% higher.

AAA rates 60,000 hotels and restaurants on a scale of one to five diamonds.

Among the largest, highest-rated hotels, Hyatt was up less than 1% in afternoon trading in the stock market today.

Marriott International (NASDAQ:MAR), with annual revenue north of $13 billion, also rose 1%.

Those hitting the road by auto or recreational vehicle should note that gas prices are approaching a 2014 high, with the national average for regular unleaded hovering at around $3.68 per gallon. That's the highest level for early summer in six years.

Average daily car rental costs are about the same as summer 2013, at $58.

Among national auto renters, shares of Hertz, which operates under its namesake as well as the Dollar and Thrifty brands, rose 1% in afternoon trade. Close rival Avis Budget (NASDAQ:CAR), whose businesses include Zipcar, Avis and Budget, was up a bit more than 1%.

Airfares are about 5% lower than last year, AAA said, and air travel is projected to rise to 3.1 million travelers from 3.07 million last year.

Discount carriers continue to do well, and Spirit Airlines (NASDAQ:SAVE) and Southwest Airlines (NYSE:LUV) are among the top-rated companies in the 19-company Transportation-Airlines group.

Spirit, whose stock is on the IBD 50 list of top-rated stocks, eased less than 1%, and Southwest was down fractionally.

Delta Air Lines (NYSE:DAL), the world's largest airline by market capitalization, also slid less than 1%.

See Also

Delta Air Lines (NYSE:DAL) said Tuesday that an important revenue metric fell in February on foreign exchange pressure. The airline said February consolidated passenger unit revenue (PRASM) fell 1.5% year over year as the strong dollar hurts international results. Domestic and corporate revenue ...

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American Airlines (NASDAQ:AAL) will underperform its peers in a key unit revenue metric and faces pricing pressure in certain markets from rivals like Southwest Airlines, according to an analyst Tuesday. American is expected to lag in passenger revenue per available seat mile (PRASM) growth in the ...

Boeing (NYSE:BA) shares lost altitude Monday on concerns that lower oil prices could result in weaker orders for commercial passenger jets. Goldman Sachs analyst Noah Poponak downgraded the aerospace giant to sell from neutral and lowered his price target to 132 from 146, as cheaper fuel could ...

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Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States. *Reflects real-time index prices.